Sunday, November 2, 2014

Student Loans don't Equal "Don't Buy a Home"

The Biggest "Lie" of
Student Loans and Home Ownership

Just read another article, in the local Virginia Pilot, by a national columnist on financial matters. 

Topic:  Student Loans are causing people to believe they can't buy a home.

As the article suggested, the average student loan burden is around $30,000.  Some former students have more or less.

The columnist noted that many individuals with student loans are convinced that home ownership is out of the question for them.
Fortunately, the columists went on to note that this could absolutely be untrue.  I AGREE!!!!!!

Student Loans don't immediately eliminate your ability to purchase a home.   An individual with a student loan is like any individual with a car loan, or having filed bankruptcy five years ago:  they MUST consult with a mortgage officer.

By reviewing the applicant's income, debts(including Student Loans) and other related factors, the mortgage officer can determine the applicant's ability to buy a home.

A common misunderstanding is that debt equals an inability to get a mortgage.   Debt isn't an immediate problem.  Rather, it is too high of Debt/Equity ratio.    Almost every borrower has debt.  Debt/Equity ratio is the ratio between the Equity(Assets) versus Debts.

Thus, don't give in to "Fear" that a student loan shuts you out of buying a home!   Reality is you can very likely but a home TODAY!
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